20120719 1055 Malaysia Corporate Related News.

Market: Government plans trading platform for unlisted securities, mercantile exchange. The government will promote the establishment of a trading venue for unlisted companies in a move that will further strengthen the capital market, says the Prime Minister. The government would also work towards setting up a mercantile exchange to provide opportunities to invest and hedge in gold futures and other precious metals. The Securities Commission (SC) would present a comprehensive proposal to the government after taking into account the domestic landscape and experiences of similar markets around the world. (Source: The Star)

Automotive: Perodua grabs 31% market share in first half. Perodua grabbed 31% of the local passenger car market in the first 6 months of this year, with sales of 93,000 units almost reaching the 95,000 units in the same period of the year. For the second half of the year, Perodua put a sales target of 95,000 units, maintaining its earlier full-year sales projection of 188,023 units in 2012. (Source: The Edge Financial Daily)

BI announces 40% foreign ownership cap for banks

Bank Indonesia (BI) has announced a 40% cap on foreign ownership of financial institutions yesterday, but has also stipulated exceptions to the rule in acknowledgement of the presence of current and future foreign stakeholders. Previously, foreign entities were allowed ownership of up to 99%. To own more than 40% of a local bank, the owning bank must obtain the approval of BI and must be publicly-listed and fulfill minimum capital obligations according to its risk profile. If not, the purchased bank will need to sell off at least 20% of its shares to the public within five years of the acquisition. (Malaysian Reserve)

Tanjung Offshore receives purchase order worth RM40m
Tanjung Offshore unit Gas Generators (M) SB has received a purchase order from Farab International LLC, Dubai for the supply of gas generators worth RM40m. The purchase order involves the engineering, construction, commissioning and delivery of gas generator packages which is expected to be completed in August 2013. (Malaysian Reserve)

MBSB to sell subsidiary for RM56m
Malaysia Building Society (MBSB) proposed to dispose of 3.97m shares in its unit, Gadini SB to Ken Holdings for RM56.17m. The cash proceeds will be utilized to expand the financing business of MBSB. The proposed disposal is in line with the group’s objective to dispose of non-income generating assets, foreclosed properties and properties acquired previously. (Malaysian Reserve)

MISC sees profit after exiting liner business
MISC is confident of returning to the black in the 2Q after making a total provision of RM1.67bn from exiting its liner business. This provision was the main factor dragging down the shipping giant into the red in the previous two quarters. President and CEO Datuk Nasarudin Md Idris said he hoped to put the liner chapter behind and that it would unlikely be providing further provisions. (StarBiz)

George Kent still awaits LRT bid result
George Kent (M) has not received any indication on the award of the RM960m Ampang LRT line extension contract, said chairman Tan Sri Tan Kay Hock. The George Kent consortium consists of China Railway Construction Corp and Tewet GmbH, a project consultant firm. The tender for the LRT extension project closed on 16 June last year. (StarBiz)


Tenaga Nasional Bhd is ready to provide electricity supply for use in the MyRapid Transit (MRT) Sungai Buloh-Kajang line. The company said it has no problem in providing the power supply as the company has excess capacity. Tenaga said that it has an electricity power capacity of 6,480MW and the amount of daily use or maximum demand only comes to 2,219MW or 34%. The project only requires 50MW and this will not be a burden on the company. (Bernama)

Malaysia's new car sales reached 303,100 units in the first half of this year, up almost 2% from 297,200 units sold in the same period last year. Perodua managing director Datuk Aminar Rashid Salleh estimates the total industry volume to hit between 612,000 units to 615,000 units this year. The Malaysian Automotive Association had forecast car sales of 615,000 units this year over the 599,877 units recorded last year. (BT)

Naza Group is discussing with its principals to manufacture and assemble big
bikes in Malaysia, capitalising on the common effective preferential tariff (CEPT) where no import duty is imposed for importation of such bikes between Asean member countries. Its joint group executive chairman, Datuk Wira SM Faisal SM Nasimuddin, said the company's diversification into other industries is vital since the automotive industry is becoming more competitive. (Malaysian Reserve)

Mudajaya Corp Bhd has extended the validity period of its letter of intent (LOI) to Zelan Bhd for the civil works on a 1,000MW coal-fired power plant project in Tanjung Bin, Johor. Zelan said the LOI was dated October 25 2011 to January 25 2013. All other terms and conditions as stipulated remained unchanged and enforceable, Zelan said. (BT)

Office rentals in Kuala Lumpur had remained stable over the past three years until end-2011, easing concerns over a possible property bubble. Overall, office rentals within the Kuala Lumpur-Golden Triangle zone are higher than average. In the fourth quarter, the rent per sq ft was RM4.66 compared with the median rent of RM4.50 per sq ft. Similarly, rentals in the suburban areas including Bangsar, Bukit Kiara and Damansara Heights are termed "extreme high rent" as per-sq-ft rent in the final quarter of 2011 was RM3.51. (BT)

Ingress Corp has denied a news report on the privatisation of the company by its major shareholders. There is no basis, whatsoever, for the RM300m amount for the deal as mentioned in the article, the company said. (Financial Daily)